Paramount lawyer says Warner Bros. Discovery merger still on track for September closure

Paramount Pictures' chief trial lawyer Jeffrey Kessler told CNBC that the company still plans to close its acquisition of Warner Bros. Discovery before the end of September, even after a coalition of state attorneys general filed an antitrust lawsuit. > "The plan is still to close this quarter before the end of September," Kessler said during the interview.

Kessler said the merger could proceed either through a settlement with the states or if a judge does not grant the plaintiffs a preliminary injunction. He added that if lower courts block the deal, Paramount would appeal and, if necessary, take the case to the Supreme Court, noting that fellow attorney Paul Clement is regarded as a top Supreme Court lawyer.

Paramount has pledged to pay a quarterly “ticking fee” of $650 million while the transaction remains pending, reflecting confidence that regulatory approvals will be secured. The Department of Justice and several international regulators have already cleared the $110 billion deal, though approvals from the United Kingdom and the European Union are still pending.

The states have rejected two proposed timelines for clearing the merger—one starting July 22 and another targeting early September—and instead sought a temporary restraining order that could pause the process for up to 28 days. Kessler expressed doubt that the plaintiffs could obtain a preliminary injunction, arguing that the merger is pro-competitive and aimed at strengthening linear television, theatrical production, and streaming competition.

The outcome of the legal challenges will determine whether the merger proceeds as scheduled later this month.